Money Smarts Quiz Answer (8b)
b. risk free
The correct answer is: c. managed by experts at picking investments
A diversified mutual fund invests in a wide variety of stocks, bonds, or other securities. The manager of the fund makes decisions about which stocks or bonds to buy, based on the objective of the fund. When you buy shares of a mutual fund, you share in the profits and losses of the portfolio, and pay your share of the expenses.
Question 8, Answer b